Changes in Investment Banking Create Space for Middle Market Firms


The agreements being sporadic and inconsistent in 2022 and capital allowances seem more difficult to obtain, companies struggled to consistently find deals as big investment banks turned their concerns away from the middle market. As a result, companies like Merchant capital of the Atlas are looking for investments that can solve this problem and provide more trading options for the middle market.

Atlas Merchant Capital, a global investment firm, made a strategic growth equity investment in Cascadia Capital, an independent middle-market investment bank. The investment will expand Cascadia’s geographic, product, industry and sponsor growth across the United States, while expanding the company’s investment banking team.

“Our investment in Cascadia reflects our thesis that large M&A advisers and investment banks have served middle-market companies poorly,” Diamond Bucket Hatfounding partner and CEO of Atlas, says Mergers and Acquisitions. “We believe Cascadia is uniquely positioned to be the franchise that seizes this opportunity and delivers strong growth in the years to come.”

The big Wall Street banks have become less entrepreneurial and less versatile while moving more towards a rigid and more standard commodity model. Along with a wave of consolidation including deals such as TD’s purchase of Cowen and Acquisition by B. Riley of FocalPoint Securitiesthere was a new need for Cascadia’s flexible independence and focus on the middle market as an investment bank.

As most major independent M&A advisers have been acquired by large commercial and corporate banks, Cascadia’s independent nature, entrepreneurial culture and agility, coupled with its focus on the middle market, have created an opportunity to thrive in the world of investment banking, adds Diamond.

Cascadia intends to strengthen its investment banking team and focus on growing its presence in the healthcare, technology and industrials sectors to enhance its specialized expertise in sub -sectors.

Do you think Atlas is on the right track to identify the market opportunity for Atlas Merchant Capital and other middle market investment banks? Let me know what you think of [email protected].

-Cole Lipsky


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